Envoy quits, Ruddock hits back

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Controversial Israeli diplomat Aryeh Scher has withdrawn from
his posting to Australia, the day before Israel was set to cancel
his appointment.

His withdrawal came as Attorney-General Philip Ruddock insisted
his daughter's friendship with Mr Scher's predecessor, Amir Laty,
was irrelevant to his expulsion from Australia.

Mr Ruddock refused to say why Mr Laty, an alleged spy, was
expelled, but ruled out the suggestion that his connection with his
daughter, Caitlin, had compromised Australian security.

Opposition Foreign Affairs spokesman Kevin Rudd, who was briefed
by ASIO, said the expulsion was due to a "national security
matter".

Government sources and intelligence insiders also played down
the role of the Ruddock connection, pointing to Mr Laty's links to
Sydney travel agent Eli Cara. Mr Cara and a colleague were exposed
as Mossad agents after being arrested in New Zealand attempting to
obtain a false passport.

It is believed an ASIO inquiry into the Australian activities of
Mr Laty - who visited Mr Cara and the second agent in a NZ prison -
recommended he be ordered to leave Australia. The scandals are
threatening to overshadow next month's visit to Australia by
Israeli President Moshe Katsav.

An Israeli Foreign Ministry spokesman said yesterday that Mr
Scher had decided to forgo his appointment because of the negative
"atmosphere" his appointment had created both in Israel and
Australia.

Australian Jewish leaders had protested about Mr Scher's
involvement in a sex scandal in Brazil five years ago.

Mr Scher was cleared of any criminal charges, but found to have
engaged in "unbecoming conduct", the spokesman confirmed.

Mr Ruddock refused to discuss Mr Scher's case, but sprang to his
daughter's defence. "Any acquaintance she may or may not have had
with this particular gentleman was totally irrelevant to his
departure from Australia," he said.

The Age believes the pair's relationship was platonic and
Mr Laty had invited himself to Christmas dinner at the Ruddock
home. Mr Laty alleged his relationship with Ms Ruddock led to the
move against him.

Mr Rudd would not comment on the substance of Mr Laty's
expulsion as it was "a sensitive matter of national security".

Veteran spywatcher Dr Michael McKinley said the Ruddock
friendship could not justify sending Mr Laty home. He believes the
links to the Mossad agents were more significant.

Dr McKinley said the obvious conclusion was national security
was involved and that "it was something very serious".

In New Zealand, academic Paul Buchanan claimed Israel used
Australia as a base to monitor the region. Mr Laty was probably
involved in this.

The Australian Jewish community yesterday distanced itself from
the incident, saying it was a matter for governments.

"The care factor is almost zero on the Jewish 'street', to be
honest," said Grahame Leonard, president of the Executive Council
of Australian Jewry.